Montana State University

100.00 Accounts Receivable


SECTION CONTENTS

110.00   Centralized Accounts Receivable
110.10     Introduction
110.20     Procedures
110.30     Uncollectible Sales
110.40     Collection and Write-Off Procedures

120.00   Returned Checks (NSF)
120.10     Introduction
120.20     Procedures
120.30     Collections
120.40     Write-Offs
120.50     MSU Bookstore Check Cashing Policy


110.00 Centralized Accounts Receivable

110.10 Introduction

The Montana State University University Business Services maintains a Centralized Accounts Receivable to record and collect sales by University service departments. The University Business Services assumes no responsibility in credit approval and will reverse any sale determined to be uncollectible. Questions relating to individual billings will be referred to the appropriate service department.

Contact University Business Services to set up a new billing on the Centralized Accounts Receivable. There must be a minimum of $250.00 or 15 invoices monthly.

110.20 Procedures

  1. Service departments must submit all invoices with summary recap or tape to University Business Services each month.

  2. Departments using manual input must close off their monthly billing on the 15th of each month (with the exception of fiscal year end). Invoices must be submitted to University Business Services for processing by 10:00 a.m. on the 18th.

  3. Service departments using terminal or disc input have the option of closing at month end as long as the information is at University Business Services by noon the next day.

  4. The standardized Centralized Accounts Receivable invoice is to be used by all service departments, unless prior approval is obtained from the Collections Technician.

110.30 Uncollectible Sales

  1. Non-departmental customers are sent monthly statements of accounts.

  2. Past due notices are printed on the 30-, 60-, and 90-day past due statements.

  3. After 120 days, any outstanding sales are reversed to the service department. Departments may at this time request University Business Services pursue collection with a collection agency.

110.40 Collection and Write-Off Procedures

  1. Bad Debt Collection

    1. All on-campus clients (noncommercial) are fully collected monthly by automatic billing or journal voucher.

    2. All off-campus clients (commercial) are billed monthly per vendor invoice information.

      bullet At 90- to 120- days past due, the Collections Technician attempts personal contact with the customer.
      bullet Transcript holds and encumbrances are initiated for all debts owed by students.
      bullet At 120-days past due, the University Business Services reverses the original charge back to the service
      department, if the total is less than $25.00; for balances exceeding $25.00 a commercial collection agency will be used.
      bullet Depending on circumstances, debtors with large past-due amounts will have further service requests refused
      and/or turned over to a collection agency.
  2. Bad Debt Write-Offs

    Accounts more than 120 days past due will be written off monthly. A monthly notification of exceptions to write-offs will be sent to University Business Services.

COMMENTS:

All delinquent accounts receivable will receive due diligence. Even after write-offs have occurred, continued attempts to secure collection will
be pursued. All delinquent accounts involving students and employees will initiate review of payroll distributions and possible payroll deductions.


120.00 Returned Checks (NSF)

120.10 Introduction

The Montana State University University Business Services is responsible for the collection of monies for returned checks. The Student Accounts Collections Technician maintains all records for returned checks.

120.20 Procedures

Student Accounts buys back the checks deposited by MSU and subsequently returned by the bank for various reasons (NSF, account closed, stop payment, Canadian funds, & routing numbers).

  1. The following checks are immediately charged back (by journal voucher) to the originating department:

    1. Checks received by the following departments:

      bullet Admissions
      bullet Financial Aid
      bullet Graduate Studies
      bullet Extended Studies
    2. Checks for Canadian funds not discounted before being deposited.

    3. Foreign checks with routing number problems.

    4. Checks that were not deposited according to MSU and State policy.

  2. An individual goes on the NO-CHECKS-CASHING LIST when the bank has returned two checks.

    1. The individual will stay on the list for one year from the date of the last returned check.

    2. This list is distributed once a month to all departments that receive checks on a regular basis. Any department
      wishing to receive this list should contact the Student Accounts Collection Technician.

    3. Checks will be charged back to departments that accept a check from an individual on this list.

    4. This list is confidential and should not be posted in view of the public.

  3. A service charge is assessed for each returned check according to Board of Regents policy.

120.30 Collections

  1. Non-registration checks

    1. Student Accounts sends written notification within three days of receipt of the check.

    2. This notification is sent to the current address on the check or on the MSU student record file. The notice
      details all the information about the returned check and any service charges incurred and requests
      payment within five working days.

  2. Registration Checks

    1. Student Accounts sends written notification to each student within three days of receipt of the check.

    2. Registration checks which are returned by the bank for insufficient funds will result in the writer receiving written
      notification that their registration will be canceled if restitution is not made within ten working days.

    3. Registration checks which are returned because of a stop payment order or written on a closed account may
      result in registration being canceled immediately. If the student received financial aid, the Financial Aid Office
      will be contacted immediately. They will cancel the aid and begin collection on any aid distributed directly to
      the student. The Department of Education will begin collection immediately on their loans.

    4. A student wishing to be reinstated after cancellation of registration must pay all charges with cash or a
      money order. A late fee will be assessed along with the bad check service charge.

    5. Students who have written a registration check that is returned by the bank will be required to pay for all
      subsequent registration costs with cash or money order for a period of one year.

  3. Non-respondents

    1. Non-students:

      bullet Cumulative amounts on checks exceeding $25.00 will be sent to the County Attorney and/or to a commercial collection agency.
    2. Students:

      bullet Encumbrances are initiated by the Collections Technician immediately upon receipt of the NSF check.
      bullet Holds are initiated by the Collections Technician immediately upon receipt of the NSF check.
      bullet Cumulative amounts on checks exceeding $25.00 may be sent to the County Attorney and/or
      to a commercial collection agency.
    3. In the event of nonpayment, the Student Accounts may pursue whatever legal action necessary and available for
      collection (County Attorney, collection agency, Department of Revenue, State Auditor, payroll deductions, etc.).

120.40 Write-Offs

  1. Checks that are not paid within 120 days are written off to the department that originally accepted the check. However,
    Student Accounts will continue to work with the departments on collection procedures for those checks that are over
    $50.00.

  2. Checks written off are retained in Student Accounts and an encumbrance/hold is placed on the student's account.
    Any monies collected after write-off is deposited back into the original account.

  3. Checks that are sent to the County Attorney's Office or to a collection agency for collection, are not written off
    for one calendar year from the date of submission. Holds and encumbrances are taken off student accounts only
    upon the receipt from the County Attorney showing payment.

  4. Write-offs are recorded as Current Year Revenue Abatements to General Operating Revenue-Miscellaneous
    Other Sources offsetting the NSF fees collected.

120.50 MSU Bookstore Check Cashing Policy

Montana State University, jointly with the MSU Bookstore, provides a check cashing fund for students at the MSU Bookstore.

  1. The check cashing limit is $25.00. Exceptions up to $75.00 are allowed, subject to availability of funds, for state
    warrants, MSU checks, other government checks, and checks from parents

  2. No two-party checks will be cashed except for government checks, travelers checks, money orders, and checks
    from parents, all subject to the above limitation.

  3. Students must have a valid ID or fee receipt and a picture ID. A valid ID from a previous semester will be honored
    for three weeks after the start of classes. Checks must have a current address and a Student ID number.

  4. Participants of campus sponsored functions, provided the individual has a picture ID and either a guest pass or a
    name badge from the sponsoring organization, will also be allowed similar check cashing privileges. Conference
    Scheduling will provide the Bookstore with a listing of conferences and the starting and ending dates for each.

  5. A parent of a MSU student, or of a prospective student, may be allowed to use the Bookstore check cashing fund
    at the discretion of the Bookstore Administration.

  6. Faculty and staff of MSU, or their spouse, with a picture ID and a staff ID may also use the check-cashing privileges
    at the SUB Bookstore.

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